So why have Apple shares dropped?

Discussion in 'MacBytes.com News Discussion' started by MacBytes, Jan 24, 2008.

  1. macrumors bot

    Joined:
    Jul 5, 2003
    #1
  2. macrumors 68000

    crees!

    Joined:
    Jun 14, 2003
    Location:
    MD/VA/DC
    #2
    Stan Beer has no idea what he's talking about. If he'd look at the rest of the market he'd see it's not just Apple that's recently tanked. Plus, we're not in a recession. That's all media hype. Unemployment is at 5%. This stimulus package will be the reason behind inflation down the road. But I'll take my $600 to pay off some bills, thank you.
     
  3. macrumors regular

    Maldini

    Joined:
    Nov 21, 2007
    Location:
    Riyadh
    #3
    All of the worlds markets have dropped not only Apple shares, plus its just ok for the shares to drop a little after Macworld, because expectations were high and there was a lot of demand for the shares before the keynote and it dropped after that.
     
  4. macrumors newbie

    Joined:
    May 2, 2003
    Location:
    Netherlands
    #4
    Yes, all the world markets have dropped, but Apple dropped a lot more:

    Afbeelding 1.jpg

    http://finance.yahoo.com/q/bc?t=5d&s=AAPL&l=on&z=m&q=l&c=&c=^IXIC
     
  5. macrumors regular

    Joined:
    Oct 9, 2007
    #5
    We are in a recession. Its got a big bandage over it right now though. Keep in mind unemployment statistics are a bit inaccurate.

    Take this example of how they gather info:

    Even if the statistics were accurate. The 5% rating may be for the country as a whole, but many areas are seeing 6-10% unemployment. Or if employed are losing their housing. And thats quite a lot of people.
     
  6. macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #6
    So, you know something nobody else does?
     
  7. macrumors 65816

    jackc

    Joined:
    Oct 19, 2003
    #7
    The article was perfectly reasonable.

    It seems obvious but a lot of people ignore valuation and assume growing company = increasing stock price. If growth is already priced in, then it needs to continue to beat those expectations to go higher.
     
  8. macrumors regular

    Joined:
    Oct 9, 2007
    #8
    No. I just accept the reality. Instead of blind optimism. Many economists agree.
     
  9. macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #9
    And many don't, which isn't "blind optimism" but sensible caution in the face of not really knowing.
     
  10. Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #10
    Of course, we never really determine that we're in a recession until well after it begins.
     
  11. macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #11
    Precisely. This is a retrospective measurement.

    A poll conducted by the LA Times recently had something like 79% of respondents believing that we were already in a recession and only something like 5% saying they didn't know -- which is interesting, since "don't know" is the only right technical answer. I think we can attribute all of this certainty about the unknowable to the current gloom on Wall Street.
     
  12. macrumors 6502

    Joined:
    Apr 15, 2006
    #12
    More sellers than buyers...lol.

    Apple's current and forward p/e is much lower than its current growth rate so should be near the bottom soon. Especially if they lower rates again Wednesday. But its not just Apple, it is across the board for the most part.

    As for unemployment...5% is only slightly higher than the typical 4% it runs at...you will never get it to 0% because there is a certain percent of the population that just doesn't want to work.
     
  13. Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #13
    Technically, the "unemployed" category only counts those who are actively searching for work. But I'm sure the standard for "active" searching is rather low.
     
  14. macrumors 68020

    brad.c

    Joined:
    Aug 23, 2004
    Location:
    50.813669°, -2.474796°
    #14
    People are selling their stock to buy all the new gadgets from MacWorld!

    Sell high. Buy when high!

    Get high, it's Friday!

    EDIT: Must apologise for unintelligible, exuberant outburst.
     
  15. macrumors regular

    Joined:
    Jan 22, 2008
    Location:
    USA
    #15
    Just a better reason to purchase the shares now that they are a better bargain.
     
  16. macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #16
    I think apple got hit by a few things at once.
    1st a market drop across the board.
    2nd less than expect growth
    3rd nothing jaw dropping at macworld. The Air is not an impressive product that is a gotta have. Even here it was not received with a warm welcome because of what it lacked. Think about the rest of the world that is not crawling with apple lovers.

    all those add up to cause a rather huge drop in the shares. 1 and 3 I think being the big ones.
     
  17. macrumors 6502a

    greenmeanie

    Joined:
    Jan 22, 2005
    Location:
    CT
    #17
    Unemployment may not be high but good paying jobs are next to non existant. I make 60K a year and live on a tight budget.

    And with the idiots that bought houses they couldn't afford and high gas prices and low paying jobs something has to break soon!

     
  18. macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #18
    you have to explain who you call 60k a year a non high paying job. That is middle class. If you are living on a tight budget then that is more of an example of what is wrong with america. People are living beyond there means.

    I have a friend who is on about 35k a year living very well. Putting money away in savings, still able to do this things she wants.

    I know some one else making 70k a year and living pay check to pay check barely getting by.

    Then there is me at 52k a year fresh out of school trying to get a savings built up.
     
  19. macrumors 604

    Digital Skunk

    Joined:
    Dec 23, 2006
    Location:
    In my imagination
    #19
    They have come down because Apple hasn't put out any great products that will change the way we compute yet. The iPhone was the last one and it's hype drove up much of the stocks. When everyone got past the fact that it was really a mediocre phone with a far superior UI the hype died down.

    Now, the MBA is proving to be the same and the iTunes Movie Rentals is going to take center stage, but that's nothing revolutionary, so the stocks are just dropping slightly until Apple produces something that changes the industry, or gives us another look at it.
     
  20. macrumors 65816

    skinnylegs

    Joined:
    May 8, 2006
    Location:
    San Diego
    #20
    She obviously doesn't live in SoCal. :D
     
  21. macrumors 604

    Digital Skunk

    Joined:
    Dec 23, 2006
    Location:
    In my imagination
    #21
    She doesn't live in any major city as well. Even in the lowly Baltimore area the average cost of living per year is $37k --> $40k.

    p.s. now that I have read the article, I find that my guess was in line with what the writer is saying. Apple didn't blow us away with any major products so the market is expecting a downward slide.
     

Share This Page